Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 29 July 2020

How Brand Awareness Does Not Have a Significant Effect on Customer Loyalty in a Public Company

Umbas Krisnanto, Darwin Yulian

Perbanas Institute (Indonesia), Public Company Officer (Indonesia)

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Pages: 1038-1050

Keywords: Brand Exposure, Customer Engagement, Electronic Word of Mouth, Brand Awareness, Customer Satisfaction, Customer Loyalty


This article aims to analyze the impact of Brand Exposure, Customer Engagement, Electronic Word of Mouth, Brand Awareness to Customer Satisfaction and Customer Loyalty. The research design used in this study is descriptive and verification methods with quantitative approaches. Primary data collected using questionnaires distributed to respondents the form of a statement filled based on Likert scale. Quantitative analysis using structural equation modelling. First, Brand Exposure is included in the good category which means that the strategies prepared for the products sold in order to build brand awareness have been rated well by consumers. In addition, Customer Engagement is included in both categories so that the process of the product to provide opportunities for consumers to engage and interact in two-way communication so as to create an interactive dialogue and provide a personal experience that will be remembered by the customer is said to be good. Second, Electronic Word of Mouth is also included in good categories, which means that product reviews distributed to others by using electronic media according to respondents are considered good. Third, Digital marketing strategies measured by Brand Exposure, Customer Engagement, Electronic Word of Mouth variables each have a significant positive effect on Customer Satisfaction, where the better the marketing strategy, the Customer Satisfaction on the product will also increase as well as it should. Fourth, Brand Exposure, Customer Engagement, Electronic Word of Mouth each does not have a significant effect on Customer Loyalty. Social Media Marketing Strategy to Customer Loyalty, the response to the evaluation of a product has been said to be good. Customer Loyalty is included in the category of good means the customer remains to re-subscribe or re-buy selected products or services as a consistent attitude in the future has been said to be good. Fifth, Brand Awareness is included in the good category so that the understanding possessed by consumers has the potential to accept the brand and embed it in their minds every time using the product has been said to be good Customer Satisfaction. Sixth, Based on the results of testing the Brand Awareness hypothesis does not have a significant effect on Customer Loyalty, while Customer satisfaction gives a significant positive effect on Customer Loyalty, so the better the Customer Satisfaction, the Customer Loyalty on the product will also increase as well as it should.


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